3 Sub-contracting rules to be aware of when responding to tenders

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting, due in large part to The Preferential Procurement Regulations, 2017 that has been implemented on the 1st of April 2017. Many entrepreneurs ask us whether they should sub-contract or not, in responding to a tender and how and where do they get onto the sub-contracting lists.

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

Finding Sub-contractors

These categories are:

  • Black female owned EME's or QSE's;
  • Black youth owned EME's or QSE's;
  • Black owned EME's or QSE's.

After the Preferential Procurement Regulations were gazetted there is a need for businesses to find sub-contractors.

But where are businesses, which respond to tenders, going to find sub-contractors? We have thought about this and one answer is at Briefing Sessions.

Sub-contractors versus Consortiums and Joint Ventures

The Preferential Procurement Regulations, 2017 states that 30% of all Government Contracts above R30 million must be sub-contracted to specific categories of SMME's. These SMME's include, but are not limited to, black female owned and black youth owned businesses.

Tenders and Subcontracting

Tenders and subcontracting go hand in hand. In fact, subcontracting part of a tender is so commonly placed that in South Africa there are specific rules regulating subcontracting in executing tenders. This is especially true for South African Government tenders.

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Title Closing Date Tender No.
Appointment of a Service Provider for the Configuration, Development, Support and Maintanance of Sharepoint Services for COGTA for 24 months 2019-10-18 11:00 COGTA (T/ 02/ 2019
Appointment of an Independent External Auditor for the Provision of External Audit Services to the Cbe for a period of three years 2019-10-11 11:00 CBE 5/ 2019
Appointment of a company to purchase and deliver a compressor for the Council for Geoscience. 2019-10-23 11:00 CGS- 2019- 38F
Appointment of a company to supply and deliver drilling equipment at the Council for Geoscience as and when required for a period of three (3) years 2019-10-23 11:00 CGS- 2019- 39F
Appointment of a Service Provider to Supply Base Station and Airborne Magnetic Sensors for the CGS, South Africa 2019-10-22 11:00 CGS- 2019- 035A
Request for Appointment of a service provider to render repair and maintenance of all air systems for the Council for Geoscience’s Pretoria Offices for a period of three (3) years 2019-10-22 11:00 CGS- 2019- 036A
Appointment of Service Provider to Upgrade and Installation Of Security Systems With Support and Maintenance for a period three (3) at Council for Geoscience Head Office. 2019-10-22 11:00 CGS- 2019- 034A
Appointment of a service provider to supply the Council for Geoscience with two Gravity Meter and two ruggedized tablet computers 2019-10-25 11:00 CGS- 2019- 033S
Appointment of a service provider to provide various services related to various laboratory gases used by the Council for Geoscience laboratories in Silverton for a period of three (3) years. 2019-10-29 11:00 CGS- 2019- 032S
Appointment of a panel of Attorneys to serve the Commission for a period of 36 months 2019-10-11 11:00 10- 2019/ 2020
Appointment of a Service Provider to conduct business process re-engineering project to Compensation Fund for a period of eighteen (18) months 2019-10-21 11:00 TCF 04: 2019/ 2020
Media and Advertising 2019-10-14 11:00 SAT Uk 001/19
Appointment of a service provider to provide technical accounting and tax training 2019-10-14 11:00 RFP196/2019
Invitation to Accredited Service Providersto Submit Proposals for The Technical Support of the Columbus Enterprise Suite 2019-10-18 11:00 CIPC BID NUMBER: 04/ 2019/ 2020
Appointment of a service provider for the removal, treatment and disposal of Health care risk waste at the Health Sites (Point of entry) for a period 24 months. 2019-10-21 11:00 NDOH 22/ 2019- 2020
Appointment of a service provider for the hiring of venues for the 2019 Annual Public Sector Innovation Conference as well as the Annual Public Sector Innovations Awards Ceremony 2019 to take place from 27 - 29 November 2019 in Gauteng Region 2019-10-11 11:00 CPSI001/ 2019
Rustenburg Magistrate Office: DOJ conversion and upgrading of old SARS building and total upgrading of the existing court facility to include among others, upgrading of emergency generator, cash hall, air conditioning system, plumbing, roofing, electrical installation, access control and security measures and provision of client special operational ICT requirement 2019-10-23 11:00 MMB 2019/ 055 EC
Request for Proposals for a debt collection services for the ARC for a period of three years. 2019-10-21 11:00 ARC/ 11/ 09/ 19
Appointment of service provider/s to provide physical security guarding services for Mpumalanga Provincial Office, Nelspruit, Thulamahashe and Ermelo District Offices for a period of twenty four (24) months. 2019-10-21 11:00 Stats SA 005/ 19
Provide Mcafee information security systems services for the Department of Defence (DOD) for a period of three (3) years 2019-10-04 11:00 RFB 2010/ 2019

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2 items that determine tender pricing

Article by Werner van Rooyen

www.howtotender.co.za

31 January 2019

Many bidders that respond to tenders struggle when it comes to calculating a price for a specific tender. One of the reasons for this is that a large number of Small Business Owners are usually new to the tender process and therefore they lack the necessary experience to price their bids correctly.

Without getting into the fundamentals of accounting there are two basic items that determine your... Read More

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